How their government treats the offenders should not be Googles concern. The people commiting the offense KNOW their own gov't and what it's capable of inflicting upon them. It would be a different matter if it was a non-citizen of China to be punished in a Chinese court (because they wouldn't know how bad it would be).
They should be concerned with making sure it doesn't happen again as another knock to their security reputation could hurt their stock price. =D
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